Now that you’ve finished your refinancing process, you’re probably ready to stop thinking about home loans and get back to your daily routine. That’ll come soon—first, there are three critical steps you should take to start your post-refinancing phase on the right foot.
Applying for a mortgage refinance is beneficial to many homeowners that are seeking to lower their monthly mortgage payments or reduce the term on their loan. Regardless if this is your first refinance or you’re a seasoned pro, meeting with a knowledgeable loan originator can help you determine if a refinance loan is right for your current financial situation.
Opting to refinance your mortgage means you can apply for a new mortgage with better terms than your existing mortgage. A refinance will typically require less paperwork and can close faster than a purchase transaction.
Refinance rates are always changing depending on current mortgage market conditions. Mortgage rates are influenced by a range of economic factors, like inflation and unemployment rates. Usually, higher inflation causes mortgage interest rates to rise. Then, as inflation rises, the dollar value decreases and investors lose interest in the secondary mortgage market. When the demand for mortgage-backed securities decreases, mortgage interest rates can get more expensive for customers.
If your refinancing journey hit a wall, don’t worry. It’s not uncommon for borrowers to need more than a few months to find a new loan, and taking a break can be better than getting burnt out. Starting the process over again gives you an excellent opportunity to reflect on your latest efforts, reevaluate your priorities, and improve your chances of success. Here are some tips for starting the next leg of your refinancing journey on the right foot.
If you’re determined to get a new mortgage, refinancing is a relatively convenient option—but it may not be the best one for you. If you’re willing to move and go house hunting again, selling your property could be more profitable in the long run. Read on for help with deciding which course of action you should pursue.